Bitcoin price is finally showing signs of breaking above the previous all-time high.
The cryptocurrency is entering uncharted territory and predicting its upside potential is becoming increasingly difficult. However, there are some clues interpreted from technical and on-chain analysis.
Technical analysis
By TradingRage
The daily chart
On the daily time frame, the price finally breaks above the previous all-time high and climbs towards the $70,000 mark.
The psychological resistance levels of $70,000 and $80,000 could be the next targets for BTC in the coming months. Nevertheless, the Relative Strength Index shows a clear overbought signal, which may indicate a possible short-term correction or consolidation.
Source: TradingView
The 4 hour chart
Looking at the 4-hour time frame, the recent consolidation becomes much clearer. The price is gradually climbing above the $69,000 resistance level and a longer-term recovery could begin soon.
Source: TradingView
However, the Relative Strength Index is also moving into overbought territory on this time frame, suggesting that the road ahead for BTC price could become bumpier. If a decline occurs, the $64,000 support level could be a potential turning point towards higher prices.
Sentiment analysis
By TradingRage
Bitcoin funding rates
While the price of Bitcoin has been rising aggressively after hitting a new all-time high, market sentiment is in a euphoric state. However, this extreme optimism could prove costly for BTC.
This chart shows the funding rate metric, which measures whether buyers or sellers are executing their orders more aggressively. Positive values indicate bullish sentiment while negative values are associated with bearish sentiment.
It turns out that the funding rates have recently been very positive. The key figure even shows higher values than the previous all-time high. Therefore, the likelihood of a long-term liquidation cascade appears very high in the short term, which could lead to a pullback or reversal.
Source: CryptoQuant
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Cryptocurrency charts from TradingView.
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